Interesting perspective on CEO pay from Fortune - some salient points on how Boards consider one group of organizations as "peers" for setting pay, and another for setting targets.

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First, the peers often aren’t really peers. As Clifford recounts, to set its CEO’s pay, UnitedHealth Group (UNH, +0.84%) recently used a “peer” group stuffed with companies unrelated to health insurance, such as Apple (AAPL, -0.44%), Coca-Cola (KO, +0.95%), and Citigroup (C, -0.97%). It’s ludicrous to think that UnitedHealth’s CEO could be a candidate to run Apple. It assumes a generic market for CEOs that doesn’t exist.